tv Tavis Smiley PBS November 14, 2009 12:30am-1:00am EST
[captioninmade possible by kcet public television] captned by the naonal captioning institute --www.ncicap.org tavis: goodvening. we continue o series, jason zweig with the wall street journal. his book"the little book of safe money." so, lance reddick sts on the popur show, "fringe." they are cominup right now. >> there are some anythings that walmar is looking forward to doin like helping people live better b mostly, we are
looking to help build stronger communities a relionships with the >> nationwide insurance proudly supports "tavis smiley." >> and by contributions to your pbs stations from viewers like you. thk you. tavis: a couple ofuick programming notes join me next week when i will have on trade agassi, and rap supersr, 50-cet.
tonight we continue our series with jason zweig, a person finance coluist with the wall street jrnal. his last book is called "the little book of safe money pirk he joins us tonight fm new york. good to ave you on this program. >> thank you for havg me. tavis: it is aot easier sd than done. >> it sure is. benjin graham said the inveor's chief obstacle is actually yrself pretty much harder to couer yourself than the market because your own behavior constantly gets in the way. most investors are their o worst enemies. i hop to givtips on how people to conquhat worst enemy at home in this book. tavis: what do we do most that
tripus up? >> probably being not as confident than the evidence tells us we should be. think back to 2007hen people bargednto the market like the was no such thing as risk. they bough stock with regard with what they paid for them. eyook out mortgages they could notfford and borrowed moy they could not afford to pay back. th over confidence is really what kllsnvesting, returns of wealth more than anhing else. the kinds ofarket we went through in 28 and an early 2009, from the peak inctober 2007 until mch 200 the u.s. stk market went down abou 60%, and over $10 tllion o global wealth disappred. tavis: is the al pblem that
we are listening to ourselves and overconfident about the advicee are givinourselves aor are we being misled? >> it is really both. always, always think twice. think twice abo what youell urself and think twice about what anybody else tells you it is very easy to fall into the temptation of liening to an expert who appea to have a goodeason for what he or she iselling y, but always get a second opinion u shoul always sleep on it. if the markets are open, your wallet should be closed. there is nothi going to happen --here is nothg that is goi to happen today that will need your money. tavi let'salk about the
three commandsn your book -- 3 commandments iyour book. tainvestors get swept up with wh is happening aoundhem. don't want to be left out so i am going to jump in. ask yoursel how much do i need to te that rk? if you doot need to te the risk, you shouldot take it that is really a comm mistake that people make, getting spt upn other people's thinng. tavineed needs is such a subjective term. whatoes one need to do? >> the best dinition for how much risk you need to take is at your objecves a. ifou need to save a ton o money for future spending like college tuition or a morage down payment, yoreally should
not be couing on the stock market or bon or any other kind of investment to be th only way you gethere. if you do not save the money first, it does not matter w u invest it. the stock market is not there to turn it0% a year because that would be convenient. sometimes it is going to go dow 60%, soe sure you are counting on your cell first on e ability to ve. >tavis: the second commament seems contrary about playing the markets, thou shall not te any risk that is not most certaito reward thee for takint. >> not when you takeisk you shou be 100% sure it will pay off, becausehen it wouldot be a risk. when i say most certain, what i
me is that underserved -- under normal circumstances, you shou turn out ok. the chance of losing all laureateost of your money should be reay, really small, d there are a l of things that people do that they take risks th are actually pretty certain to wipe them out. if you buy home with no money down, that is a really bad ide no mter what anybody tells you. using borrowed mon 100% is ve foolish. tavis: the thi commitment is dealt shall not take risk that the dow is not afford to lose. this is probably the biggest of all. one of the simpst ways investors can keep fro falling intoeally serious mistakes is unjust to say to themsves, what wouappen that if out of every dollar i put io this,
i' lose 0 of those pennies? what if every penny that i put into this gets wiped out? would i still be ok? if youill still be ok, if yo can survive without 100% of the money you put in, maybe it is a risk you can affordo tak. if losing youroney on this one is t pnful, do not take that risk tavis: part of what weeep hearing that wall street was run amok on these three command and spreaments. ar you comforted by the fact that wall seet has leaed lessons fr the debacle we are hoping tcome out of so that those of u that invest our monecan be rpected and believed that our money ibeing tread in a fair way? no, tis. tavis: a long questn with a
veryimple answer. >> it is a very sple answer. you have to depend on yoursel there is noby out the that you cacount on to defend your interest except yourself. tavis: why is t financial industry for advising clients a billion dollar business? >> it is a billion dollar busine because people need t feel that ere is somebody they can trust. i don't meano imp that every financial adviser in americ is a crock. that is nothat i am saying. you e the first line of defense. you may ae toind people that you can trust that will help you and put your interests ahead ofheir own. there is always a risk that the government andther regulator that are supsed to be watching out f your interests will do it as good a job thisime as
they did last time. when you add those things together,ou are the one that has to be vigilant and te char and take controln order to beeasonably sure that you are going to berotected. tavis: who a the con artists u are talking about that we need to conquer? >> they are on your phonethey are probably in ur neighborhood ey are anybody that pmises you somethi that sounds be good to be true. it sounds to be good to be true, it probably is. i do not think tt saying is true. if it sounds to be good to be true, it defitely is. there are people outhere making promises that are too good to be true. u have to control the temptation to lisn to those people and ask yourself, if ey could real do that for me, why are they not doing it r themselvesirst?
tavis: othe other sid of this recession, your sense of whether or not we will ha a more praccal approach, a more inform approach to spending, saving, and vesting. >> i have >hope -- i have a hope for ameri, which is we ll learn, as we gradual seem to be learning, theingle most important thing tt people can do for themselves is save money for their future. we seem to be expericing a returno thrift. i grew up on farm where we sad paper cli and reused aper and envelopes. i he that they will come again, whereeople do itot just because they have to but they do itecause it makeshem feel good not to waste and tat money like aarbage the way a lot of people eated in it in the
past few years. tavis: his name is jon zweig. i have jus scratched the surface of "the lile book of sa money." thank youor coming on. >> ank you for having me. tavis: up next, "fringe" star, lance reddick stay with us. lance reddick an actor who we c to love on "the wi ." he n stars on another series, thparanormal drama "fringe." >> the director is classified him as a natiol security that.
>> we are the only rean to pre whats going on. >> new information has come to light about his plan. >> heurchased twone-way ticket to coast arica. >> wit respect, l the evidence points to an angry kid. >> the director thinks it is worse. he may have been recruido deliver a project to our count's enemies. >> ovwhelming force will be brought to bear if necessary. he coulde collateral damage. >> we need to clean up th situation on our own before it is too late. vis: you are often talented, but so much oft, for m is that voice. would pay you f that voic >> i am here today wh tha hoarse throat.
i never really thought that much abo my speaking voice and h it sounded. when i was first startin off in new york, i would freelan with a voice over agent. i would go to a coue of additions and would not he back. tavissuccess does that for you. there are many reasons i am not an actor srting with the fact that it requir talent i don think i he the constitution to hane that kind of constant rejection that e has toakever the course of one's career to get to the level of success tha you have now arrived at. made aoke about not hearing back from people, but how he you navated this journey of ose no's along the way? >> wow, that is interesting
question for me because i think myself as emotional and hypersensitive. as fars being a performance arst, it is good becau it makes yo ver --ow do i put ? acting, i mn, it is like jazz musicians. so much of it is listening a responding to what you have been given. you have to be open to it. it is funny how things ok from the outde i often bemoan the ft that i do not have thicker sn becausehereas in my work, it gives me an advantage but in real life, it is tough. when y are doing something you
think you have to do -- there was one point iny career when i really thought about quitting. so often you feel ke hollywood isot looking toou as a black aracter actor. i realized i uld not quit because this washe only way i was qualified to do that i cld make enoug money to payff my studenloans. [laughr] tavis: when did u know if there was a point in ur career when youhought about quitting --hen didou arrive at that alternate placehere you thout that you could do this, yo calling? >> once again, is funny how life is i never thoht i would be an actor. i thought i would be a musician. i studied music thugh high- school andhat ought hei-- and it
i would be a classal musicn. i rely started acting because of my muc career. i did not srt acting until i was 27. i went to yale. thats a story in of itself. one of the js i was wking i was living in boston en i first left school. i did a lot of different jobs. i delivered pizs, newspapers, i was a waiter. i was worki as a artist monologue. boston has so many artles. e of the painters that i used to model for,or his drawing class is, and i started modeling for him privately.
ere was huge painting tt he did of me. we would sit and tal stly we would talk about music and movies. he talked to m about training. i n think i nd to trn to be an actor. i said was going too to new york. the only other placeo consider s at yale. i could not get intoale anyway because i never finished my chelor's degree. he said i might want to csider it. i thought, hmm. the only her thing i knew about yelped was thatt was in new haven, so i called them up d asked them. this said i could aply. thisecond go to the program.
if i ever finishedy bachelor's degree,heyould convertt to master's degree. the universy would not give a degree to somebody withou a bachelor'degree. 95% of the people that i graduated with had a certificate. i went to the exact same program in training. tavis: what the yo make of the fact that you discover your gift somewhat late in life? what do you make of that loong back? >> you know, i am more of a believer of this now, but at the time, i was doing -- i was desperate. i was doing what was in fro of me. i had comff -- i had come off of a double shift of waitin bles and then went a double ift of delivering newspaper
i was just used to running on adrenalin athat point. something happened with my back wh i lifted this heavy bundle. ov the coursef the next month, my back start hurting more and more. as i lay recovering, i thought, you kw what, if i keep doing this, i am going to keep doi th. i stard acting -- if i could sing, i could act, let me try that. i went a few ditions. i started going on some straight acting audtions and started getting casat a local theat in boston. the tavis: and the rest, the say, ihistory. >> i ran into him and his wife in new york. everytime get near h, i hope
some of it rubsff on me. he h the touch. >> it ia popular show and it is fun to do. after e "theire," it is fun do something that is fun. tavis: how much did e exposure to get people to appreciate youtalent, your gift? >> the whole way the "t phenomenon hapned, it was a slow bn. it began a a grassroots thing that picked ste and it was not really until we bared our last season that it explod into this mainstream phenonon. part of the reason i was offered the role of in lost, " the producers were fans of t"the
wire i had a chancto get the fst crack at a role in "fringe taviswhat do you make of this paranormal activity that you portrayed on the tv set, in the real world now? >> well, hmm. i d believe >> ilmost want to t the word "believe i quotes. i find itore difficult to ubt the possibili that there ar parallel realiti. given w much -- every twist that we make -- every choice th we make is a blding block of our future andow many times we could go down thisoad or this other road.
who knows what would haen to if i had not hurmy back? i never in my lifereamed i woulbe an actor. the rst show that i did, i was doing community theater. it was a chrtmas time musical we had four weekends of performances. my father came t visit. subsequently, he came see everything that i did. we are still living two families to a house in boston. my father is in town visiting and die in sittingt the bar at his hotel -- and i amitting at the bar in his hotel bed my dad said he used toee people on tv and movies. it is not because head this fanciful notiohat my childhood should be starstruck but he thoht i belonged there.
tavis: your faer was a teacher? >> he taughtigh schl for 12 years and thenas a public defender for 20 years. tavis: what wait like growing up ia house where both pares were teachs? >> i adore my fatehr. [laughter] tavis: i knowhere this thing is going. >> i know he is gng to be watcng this. there were times when i grew up,et me give you a peect example. i would say something abo the ne. he wld s, "the what." >> no, it is the ne. [laughter]
tavis: iee why you preface th. i digress. his name is lance reddick. he is one ofhe start of "fringe." i am glad to have you on. thank you for coming through. that is our show tonight. u can access our radio podcast at pbs.o. thankou for watching, and as always keep t faith. tas: 20 next time for conversation with jasonnd shoschwarman. >> there are so ny thingshat walmart looking forwardo